Selling Mortgage Notes FAQ

Receiving payments on real estate sold but tired of waiting for your money?  You might want to consider selling your mortgage note for cash today!

If you are wondering how the note buying process works, we have you covered! Here are the most common questions we receive on selling mortgage notes in Florida.

What types of mortgage notes will you buy?

Diversified Investment Services, Inc. specializes in buying real estate notes in Florida!  We prefer private seller financed notes that are:

  • First Position
  • Performing
  • Secured by Florida Real Estate (residential, commercial, or mobile homes with land)
  • 6 Month Payment History (or more)

Why do you only buy notes in Florida?  What if my note is in another state?

In past years we bought notes in all 50 states! Each state is a little different and after being in the note business since 1988 we found life was simpler when we focused our note buying efforts closer to home. We also provide training and support for other note buyers and prefer to focus on Florida to avoid competing with them.  If your note is outside of Florida we provide a Directory of Note Buyers in the Resources area.

Why would I sell my mortgage note?

Circumstances change and many sellers would prefer cash today rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments for cash:

  • Retirement
  • Taxes
  • Investment Opportunity
  • Expensive Medical Care
  • Vacation
  • College Tuition
  • Unexpected Financial Changes
  • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
  • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

Why Do Sellers Use Owner Financing?

Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

  • Quick sale of the property
  • Monthly income from the note
  • No hassles of bank financing (fees, delays, and strict underwriting)
  • More qualified buyers
  • Property is hard to finance

What is a note appraisal?

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property. It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

We recommend you have your note evaluated once a year as pricing may change based on market conditions

How do I maintain the value of my note?

Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

  • keep good records and copies of the payments received,
  • obtain a copy of the property insurance policy from the buyer each year; and
  • verify the property taxes are paid when they come due (usually twice a year).

This will help maintain the value of your important asset and avoid any unpleasant surprises.

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

How is the value of a note determined?

The value of a note is affected by the down payment, interest rate, payment amount, and term as well as the buyer’s credit rating and payment history. The type, condition, and value of the property also impact the value of your note.

The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How will selling my note affect the payer?

The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.

How do I get started?

The first step is to obtain a quote using our online form [insert link] or by calling us at [insert phone number]. We also request copies of the documents relating to your transaction:

  • Note and Mortgage
  • Closing statement
  • Buyer information
  • Payment history and current balance
  • Previous title insurance policy
  • Current hazard insurance policy

We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.

How will I be paid if I decide to sell my note?

The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.

We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your valuable asset.

Why should I work with Diversified Investment Services?

We pride ourselves on:

  • Quick closings
  • Excellent customer service
  • Competitive quotes
  • Providing customized options
  • Strong financial backing
  • Flexibility on all note purchases
  • Confidentiality with all transactions
  • Credibility in the industry with over 20+ years of experience!

At Diversified Investment Services, Inc. we purchase notes secured by property within the State of Florida. We provide top rate service combined with the best prices available.  To request a quote we simply ask that you provide a few details about your transaction.  This can be done online, by fax, or simply call our office.  To get started you can get more details here: Florida Note Buyer Quote Request.

For notes outside of Florida there is a Directory of Note Buyers in the Note Industry Resources area.

Please Contact Us if we can assist you!